Australia - DAC Peer Review of Development Co-operation, 2013

Australia can deliver a growing aid budget effectively and efficiently

Australia’s aid system is set up to deliver its growing aid programme effectively and efficiently after impressive reform since 2010.

The DAC review of Australia’s development programme notes the government’s dual objectives: helping people overcome poverty; and Australian national interest in the stability, security and prosperity of its neighbouring region. The Committee found that clear political directives, policies and strategies reflect Australia’s international commitments and good practice.

Australia delivered USD 5.44 billion in official development assistance (ODA) last year, or 0.36% of its gross national income (GNI). Australia's goal is to reach 0.5% of GNI by 2017 - a goal the DAC encourages it to follow through on, given its good track record and relatively strong economy.

Australia's peer review history

Implementation of peer review recommendations from 2008

Australia has made good progress in implementing the recommendations of the 2008 peer review especially on how it organises and manages development co-operation, by reinforcing the strategic focus of the programme and aligning the objectives of its co-operation to partners’ development priorities.

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Reform of Australia's aid system keeps it fit for purpose

The organisation of Australia’s development co-operation system is a good reflection of its determination to strengthen the quality, effectiveness and efficiency of aid management. The impressive and complex restructuring of AusAID has reinforced its capacity in terms of strategy, policy, performance management and results. Australia managed its complex and rapid reform process strategically. It used change management models for reform and outlined clear goals and steps while being flexible and consulting with staff. The major building blocks of corporate reform have been approved and put in place. To ensure that the reform bears its fruit fully and to avoid reform fatigue, AusAID needs to give time for it to filter through the organisation.